SBA 7(a) Q&A
Short answer
You should check the SBA Franchise Directory; if the franchise is listed and approved, it simplifies the eligibility process.
The SBA maintains a list of approved franchise systems. Franchises on this list have already been reviewed for compliance with SBA eligibility requirements, particularly concerning control and affiliation. If a franchise is not listed, it requires a more extensive review process.
Before committing to a $500,000 franchise acquisition, search the SBA Franchise Directory. If 'Smoothie King' is listed, it confirms its eligibility. If it's a new or unlisted franchise, your lender will need to submit the franchise agreement to the SBA for review.
Insider move
Lenders must verify franchise eligibility to ensure the SBA guarantee. An unlisted franchise requires a detailed review of its agreement to confirm it does not contain provisions that restrict the borrower's control or create affiliation issues.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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